Finance Minister Bill Morneau rises during Question Period in the House of Commons in Ottawa on May 26, 2020. Opposition parties have laid out their demands as the federal Liberal government prepares to update Canadians on the state of the economy after four months of COVID-19. Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March. The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit, but opposition parties want more than just numbers. THE CANADIAN PRESS/Adrian Wyld

Tories, NDP at odds over federal spending as Liberals prepare fiscal snapshot

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion

Opposition parties have laid out their demands for the federal Liberal government as Ottawa prepares to update Canadians on the country’s finances after four months of COVID-19 — and where it expects the economy to head for the rest of the year.

Wednesday’s fiscal snapshot will be the first public assessment of the country’s economic and financial situation since the pandemic started in earnest in March, forcing provinces into lockdown and the Liberal government to start doling out billions in aid in lieu of a federal budget.

The snapshot is expected to give an idea of how the government sees the rest of the fiscal year playing out, including figures for a potential deficit.

But the Conservatives and NDP made clear Sunday that they want more than just numbers: they want action. That includes additions, changes and expansions to federal COVID-19 support programs along with more accountability and transparency.

Yet while the Conservatives also called for the Liberals to produce a plan to get government spending under control, the NDP was warning against any premature efforts to cut federal assistance.

Conservative finance critic Pierre Poilievre on Sunday blasted the Liberals’ handling of the economy while small business critic James Cumming underscored the importance of accurate fiscal projections and planning from the government for Canadian business.

“What business needs as they start to open up is some level of certainty,” Cumming said during a news conference on Parliament Hill.

“They need to understand what the government’s finances are to understand how long these programs are going to last to assist them and when they will be starting to phase out. And a lot of that has a lot to do with the financial health of the government.”

Federal figures last week showed direct government spending on COVID-19 supports at just over $174 billion, which included another increase to the budget for the Canada Emergency Response Benefit. That is now expected to cost $80 billion as eligibility increased to 24 from 16 weeks.

At the same time, Statistics Canada last week reported that the Canadian economy shrank 11.6 per cent in April — the largest monthly drop on record. That follows a 7.5 contraction in gross domestic product in March. Both are expected to hit Ottawa’s bottom line through lost tax revenue.

Parliamentary budget officer Yves Giroux has previously predicted that the increased spending and lost revenue could combine to see the federal deficit top $250 million this year.

With COVID-19 in retreat across most of the country — at least for the moment — Poilievre said it was time for the Liberals to produce a plan to start getting what he described as Ottawa’s “fiscal mess” under control.

That includes weaning Canadians off the CERB and getting them back to work by phasing out the $2,000-per-month benefit based on how much they earn rather than simply cutting off anyone who earns more than $1,000 in a month.

“The government is punishing Canadians for working,” Poilievre said. “We think that people on it should be rewarded when they make the courageous decision to go back to work and make a wage.”

Poilievre, who also demanded more money for the federal auditor general’s office to better scrutinize government spending during the pandemic, dismissed suggestions that Ottawa needs to keep the taps wide open to stimulate the economy as it starts to reopen.

He instead took aim at various Liberal policies and regulations around natural-resource development, particularly in Alberta and Saskatchewan, as having stunted economic growth and prosperity in Canada.

“Removing these government obstacles is the way you unleash growth and create a cornucopia of opportunity for our workers and businesses that will generate the wealth,” he said. “More deficit spending does not create jobs and growth.”

Yet NDP finance critic Peter Julian warned against any early cut to COVID-19 benefits and support and instead repeated longstanding calls from his party for the federal government to crack down on tax havens and tax wealthy Canadians and businesses to pay for the federal aid.

“There’s been a call for … dealing with the economic and financial fallout of the pandemic through cutting services,” Julian said in an interview.

“We actually believe that now is the time to handle the pandemic from the revenue side. We believe in tackling the tax haven problem, which is more acute in Canada than any other country. And to put in place a wealth tax.”

The NDP is also pressing for the Liberals to ease the criteria for businesses to access the federal wage subsidy, which covers up to 75 per cent of employees’ salaries, to encourage more hiring. And it wants the government to provide promised support for Canadians living with disabilities.

While the fiscal update will be presented in the House of Commons on Wednesday, Julian said the report itself will not require a vote. However, he suggested NDP support for future legislative proposals from the government could be contingent on the Liberals accepting the NDP’s requests.

The Liberals have leaned heavily on the NDP since being elected to a minority government in October. That included securing NDP support for several confidence motions in the winter and spring that, if defeated, could have triggered a federal election.

Lee Berthiaume, The Canadian Press


Like us on Facebook and follow us on Twitter.

Conservative Party of CanadaLiberalsndp

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

District of Vanderhoof Mayor Gerry Thiessen recently photographed the town’s original cemetery — now completely overgrown — among the trails behind the Vanderhoof Museum and Visitor Centre. (Gerry Thiessen photo)
Mayor, historical society examine ways to mark Vanderhoof’s original cemetery

“It is a part of our history and we don’t want that history to evaporate,” Thiessen said.

Northern Health saw 14 cases in one day earlier this week, the highest in one day since the beginning of the pandemic. (Image courtesy CDC)
Northern Health sees highest number of COVID-19 cases in one day

There have been 23 cases of reported cases of COVID-19 in the Nechako Lakes Health Area

’Herbert’ Shane Hartman with his daughter Isla. (Shane Hartman Facebook photo)
Love for daughter and drumming leads to author’s first book

Shane Hartman spent very spare moment writing and illustrating Isla’s New Drum

“We have to make a call out to address this now so our people don’t have to feel fearful,” said Tribal Chief Mina Holmes. (Carrier Sekani Tribal Council Facebook photo)
Carrier Sekani Tribal Council seeks Indigenous-led task force in northern B.C. hospitals

Request made in an open letter to federal minister Carolyn Bennett

Over the years, Janice Blackie-Goodine’s home in Summerland has featured elaborate Halloween displays and decorations each October. (File photo)
QUIZ: How much do you really know about Halloween?

Oct. 31 is a night of frights. How much do you know about Halloween customs and traditions?

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie “The Name of the Rose” at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

Oscar-winner was knighted by Queen Elizabeth II in 2000

This house at 414 Royal Ave. became notorious for its residents’ and visitors’ penchant for attracting police. It was also the site of a gruesome torture in August 2018. It was demolished in 2019. KTW
6-year sentence for Kamloops man who helped carve ‘rat’ into flesh of fellow gang member

Ricky Dennis was one of three men involved in the August 2018 attack

Cpl. Nathan Berze, media officer for the Mission RCMP, giving an update on the investigation at 11:30 a.m., Oct. 30. Patrick Penner photo.
VIDEO: Prisoner convicted of first-degree murder still at large from Mission Institution

When 10 p.m. count was conducted, staff discovered Roderick Muchikekwanape had disappeared

Among the pumpkin carvings created this year by Rick Chong of Abbotsford is this tribute to fallen officer Cont. Allan Young.
Abbotsford pumpkin carver’s creations include fallen police officer

Rick Chong carves and displays 30 pumpkins every year

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

An online fundraising campaign in support of the six-year-old boy, Edgar Colby, who was hit by a car on Range Road Oct. 25 has raised more than $62,000 in a day. (Submitted)
$62K raised in 1 day for boy in coma at BC Children’s after being hit by vehicle in Yukon

The boy’s aunt says the family is “very grateful” for the support they’ve received from the community

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

Most Read